2016 BUDGET | Costello: End the ‘madness of endless aid cuts’

Those on the frontline combating extreme poverty say Australia has turned its back on the world’s poorest again.

Tuesday’s federal budget gutted Australia’s foreign aid budget by a further $224 million in the 2016-17 financial year, bringing official aid to $3.8 billion.

This represents 22 cents for every $100 of national income – its lowest level ever in the nation’s history.

The aid program is still reeling from the $1 billion stripped away in last year’s budget and the $11 billion since 2013 taken for bottom-line savings.

World Vision Chief Executive, Tim Costello called for an end to the ‘madness of endless aid cuts’.

He said the fresh cuts of $225 million puts lives and futures at risk, as well as regional and global security and prosperity.

“The madness of endless aid cuts was launched by Tony Abbot two days before the last federal election, now Mr Turnbull and Mr Shorten have the opportunity to come together to change that.”

Indonesia had five per cent or $15 million shaved from its assistance in 2016-17, on top of the 40 per cent hit from last year. Its aid program is now worth $296 million.

Other countries were let off the hook, but aid groups are not happy.

ChildFund Australia chief executive officer Nigel Spence said despite making noble statements in his maiden speech to parliament about the importance of helping the world’s poor, Treasurer Scott Morrison had failed to act.

Oxfam Australia says it is already scaling back life-saving work in Indonesia, Bangladesh, Sri Lanka and Sub-Saharan Africa.

Papua New Guinea remains Australia’s largest recipient of foreign aid.

In 2013, PNG secured a $420 million one-off aid sweetener from the Rudd government to revive the Manus Island detention centre and kick start a refugee resettlement program.

The PNG government has announced it will close the detention centre, following a decision by the country’s Supreme Court that ruled it illegal.

The fate of 900-odd men detained there remains unclear, but Australian officials travelled to Port Moresby at the weekend for talks.

Several hundred million dollars of the special aid package is unspent, but PNG will still receive its annual $49.4 million contribution in 2015-16 and 2016-17.

Likewise, Cambodia’s aid program remains untouched despite the lack of refugees opting to be resettled in the Southeast Asian kingdom.

Australia offered Phnom Penh a $40 million aid package to accept refugees for resettlement on a voluntary basis in 2014.

Only five have accepted the offer and of those, three have returned to their country of origin.

Cambodia will still get its $10 million of aid a year under that deal on top of its regular support.

There was also $15 million allocated for refugee resettlement costs but only $2.71 million has been spent so far.

Meanwhile, from 2017-18 there will be a gradual increase in overall aid support.

In four years the aid budget is projected to return to $4.1 billion a year. However, Costello called on both the Government and Opposition to commit to restoring Australian aid to its pre-cuts level of $5.5 billion.

“All parties have 60 days to commit to restoring the aid budget to the previous level of a $5.5 billion (only 0.3 per cent GNI),” Costello said. “We call on all parties to commit to making this happen over the life of the next parliament.”

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